Underwrite the opportunity
We review sponsorship, property performance, business plan, and priorities before approaching the market.
Industrial Construction financing
Construction Financing for Warehouse, Logistics, and Industrial Development
Quick answer: Industrial construction loans fund ground-up warehouse, distribution, flex industrial, and cold storage development projects. These 18 to 36-month facilities are structured for industrial development: phased construction draws, pre-lease or speculative underwriting, and exit to CMBS, life company, or agency permanent financing at stabilization. Minimum loan size is $2 million, targeting industrial developments in major logistics corridors.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
When it fits
When Industrial Construction financing fits.
Industrial and logistics construction remains one of the most active development sectors, driven by persistent e-commerce demand, nearshoring and reshoring of manufacturing, and constrained infill land supply in primary distribution markets. Lenders evaluate industrial construction on market absorption data, sponsor track record in industrial development, pre-leasing percentage, and exit cap rate assumptions. Speculative industrial construction in supply-constrained markets continues to attract bank and debt fund capital. Pre-leased build-to-suit industrial attracts the most competitive terms given the credit-tenant lease backing the project.
Structure before pricing: leverage, recourse, reserves, prepayment, and closing certainty can matter as much as the headline coupon. We test those trade-offs before recommending a path.
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Speculative warehouse and distribution construction in high-absorption logistics markets
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Build-to-suit industrial for credit tenants including e-commerce, 3PL, and manufacturing
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Cold storage and temperature-controlled warehouse construction
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Last-mile infill industrial redevelopment and new construction
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Flex industrial and light manufacturing park development
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Industrial portfolio developers building multiple facilities under a single facility
Lender selection
How We Source Industrial Construction Capital
We do not treat the lender list as a directory. We target the desks whose current appetite fits the asset, sponsorship, market, and business plan, then compare the full execution, not only the rate.
| Capital source | Where it may fit |
|---|---|
| Banks | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| Debt Funds | Flexible capital for transitional, complex, leveraged, or time-sensitive executions where conventional credit boxes may not fit. |
| Life Insurance Companies (Pre-Leased) | Long-duration fixed-rate capital for high-quality assets and experienced sponsors, generally with conservative leverage. |
| Private Lenders | Flexible capital for transitional, complex, leveraged, or time-sensitive executions where conventional credit boxes may not fit. |
| CDFI Lenders | Mission-oriented capital that may support eligible communities, sponsors, and projects outside conventional lender criteria. |
How we work
One process. Multiple capital sources.
We position the transaction, identify the lenders most likely to compete, and compare proposals on economics and execution risk, not just headline rate.
A well-structured financing process should create real choices for the borrower, not simply deliver the first term sheet.
Target the right lender desks
The transaction is matched to lenders whose current appetite fits the property, market, and structure.
Create a comparable field
Proposals are evaluated across rate, proceeds, recourse, reserves, prepayment, and closing certainty.
Manage execution through closing
We coordinate lender diligence, third-party reports, and issue resolution until the loan funds.
National reach
Market knowledge where the deal requires it.
We arrange industrial construction financing nationwide while matching each transaction to capital sources active in that market and property type.
Atlanta, GABoston, MAChicago, ILDallas, TXDenver, COHouston, TXLos Angeles, CAMiami, FLNashville, TNNew York, NYPhoenix, AZSan Diego, CASan Francisco, CASeattle, WATampa, FL
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Questions
Industrial Construction financing, clarified.
The final structure depends on the asset, sponsorship, and market. These are the starting parameters we discuss most often.
Working out equity? Our commercial property down payment guide covers typical requirements by loan type: 20% to 30% conventional, 10% for SBA owner occupied.
An industrial construction loan funds ground-up warehouse, distribution, flex industrial, and cold storage development. Terms run 18 to 36 months, interest-only, funded through progressive draws verified by a third-party inspector. Minimum loan size is $2 million, and facilities scale past $100 million for portfolio developers building several buildings under one commitment.
Yes, speculative industrial remains financeable in supply-constrained logistics corridors, but leverage steps down. Expect up to 75% of total cost on a spec building versus up to 80% once space is pre-leased. Lenders substitute market evidence for a signed lease, so a current absorption study, comparable rents, and a credible lease-up budget carry the file.
Pricing generally runs 6.50% to 11.00%. Banks and life insurance companies compete hardest on pre-leased build-to-suit projects backed by a credit tenant lease. Debt funds and private lenders own the speculative and heavier-lift end of the market, quoting wider spreads in exchange for higher proceeds, looser covenants, and faster execution.
Underwriting turns on four things: the sponsor's completed industrial projects, a fixed-price or guaranteed maximum price contract with a qualified general contractor, verified market absorption, and an exit cap rate that supports a CMBS, life company, or bank takeout. Plan on 45 to 90 days from application, longer where entitlements, utilities, or environmental work are unresolved.
Cold storage underwrites as a hybrid of real estate and equipment. Refrigeration systems, insulated panels, and slab design push costs far above dry warehouse per square foot, and lenders discount those specialized improvements when sizing against stabilized value. Expect lower loan-to-cost, a longer lease-up assumption, and pressure to identify an end user before breaking ground.
Let's evaluate the right industrial construction structure.
Share the property and financing request. We will respond within 24 hours with an initial view.